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This drop in demand has contributed to a price crash.
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OPEC has decided to cut output by up to 20% to quell the drop.
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The demand for petrol dropped by nearly 50% in the US in March alone. An opportunity for EVs?
The global COVOD-19 pandemic is affecting how we live our every day. Part of our typical routine involved jumping in our cars and SUVs to go places. As most of the planet is on lockdown, we’re not driving anywhere near as much as we did only a few months ago. This has caused a dramatic drop in demand for fuel, has dropped the price of crude and is even threatening to close petrol-stations, something that was inconceivable only a few years ago.
What we are experiencing is a perfect storm of uncertainty, economic slowdown and, for many, a revaluation of how we live our lives. New car sales are plummeting at an alarming rate which has repercussions throughout the economy. Couple this with all industries suffering and we find countless millions of people potentially holding off on their next new car purchase. Historically, lower fuel prices entice consumers to purchase bigger vehicles however this time, the scenario is much different.
This lockdown is clearly helping out the environment as displayed by countless images that are circulating on the interwebs where rivers and the skies are clearer. These revelations could encourage many to adopt electrification and EVs around the world including Canada. This could quickly become an opportunity to support the adoption of EVs.
What the world will look like when we come out of this pandemic is up to us. It will certainly be interesting how the governments of the world will react and behave, especially if we are to assume that the POTUS has clear (mostly) ideas about oil.
